KuCoin refutes allegations of a 77% decline in Bitcoin reserves, reveals strong 106% reserve ratio.

KuCoin has countered allegations indicating a loss of more than 77% of its Bitcoin reserves since the beginning of 2023.

The cryptocurrency exchange described the figures being circulated as deceptive and incorrect, reaffirming its dedication to transparency and accountable reporting.

Is KuCoin’s Bitcoin reserve diminishing?

This issue originated from a report by a data analytics platform that referenced information from another data source.

The report claimed that KuCoin’s Bitcoin assets saw a decline from 18,300 BTC in June 2023 to approximately 4,100 BTC by April 2025.

The analysis linked this significant drop, roughly 14,200 BTC, to the implementation of compulsory know-your-customer (KYC) regulations by KuCoin in mid-2023.

The KYC measures, launched in August 2023, mandated all users to undergo identity verification. KuCoin argued that this initiative aimed to prevent illicit activities like money laundering and terrorist financing.

The data platform theorized that this compliance initiative led users to withdraw their funds due to concerns about privacy.

Furthermore, it asserted that KuCoin’s scenario illustrates a wider trend of diminishing Bitcoin reserves in centralized exchanges. However, it emphasized that KuCoin’s situation was particularly severe in terms of timing and extent.

KuCoin publishes proof-of-reserve

KuCoin dismissed the claims and expressed apprehension about what it regarded as careless reporting.

The exchange clarified that the alleged figures do not accurately represent its reserves and cautioned that incorrect information could undermine public trust.

They stated:

“We are alarmed by the dissemination of false or misleading data by certain platforms. Careless reporting confuses users and diminishes trust in the cryptocurrency sector.”

To support its stance, the exchange released its 30th Proof of Reserves, indicating a Bitcoin reserve ratio of 106%. This includes approximately 9,751 BTC from user holdings and 10,306 BTC held in exchange-controlled accounts.

The report also revealed that reserve ratios were 116% for Ethereum, 114% for USDT, and 109% for USDC.